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Cost

Pricing

  • Can be Enterprise, Web Direct or Cloud Solution Provider (CSP)
  • Most inbound data transfers are free. Outbound data transfers are by zone
  • Some typical VM Resource Meters include:
    • Compute, IP hours
    • Data Transfer In/Out (network)
    • IO: Standard Disk, IO, Blob {Read,Write,Delete}
  • Other ways to minimize cost
    • Set spending limits
    • Use Azure credits available to Visual Studio subscribers
    • Using hybrid of reserved instances with pay-as-you-go
    • choose low cost regions, locations
    • Use Hybrid Licensing or BYOL to reduce OS, Database licensing costs

Cost Management

  • compute: charged by: Size, Instance family, OS, Region, Time in use (rounded to second)
    • Services pricing based on VM: VM Scale sets, Azure Batch, Service Fabric, Azure Kubernetes Service
    • App Service has it's own Azure Compute Unit but is based on VM
    • Functions are charged per execution + CPU time (after free quota)
  • networking: VNet and subnets themselves are free
    • Public IP
    • NAT rules are free
    • Egress beyond 5GB/month
    • data transfer between regions
    • Load balancer (level 4):
      • basic is free
      • standard: 18\(/first rule/month, 7\)/month/2+ rules
    • Application Gateway: dedicated instance cost per hour + network usage
    • Network Gateway: dedicate instance cost per hour + network usage charged for both, incoming and outgoing
  • storage: charges for space + access.
    • files: LRS ~1.84 cents/GB/month, GRS = 2 * LRS, RA-GRS = 2.5 * LRS
    • tiers: Hot 1.84, cool 1.0, archive 0.2, premium 18.0
      • archive is cheaper to store and expensive to access
  • SQL Server (IaaS) and SQL Database (PaaS)
    • IaaS: VM cost + licensing cost. Usually licensing cost > VM cost
      • If license is Enterprise, cost might lower due to Hybrid Licensing
    • IaaS: developer licenses are free, use them in non-prod environment
    • PaaS: two pricing models
      • vCore: based on # of CPUs + storage. e.g. 4 vCore = $1500+storage
      • DTU: Performance based pricing model (CPU+Storage prepackaged)
  • Cosmos DB: pricing for provisioned throughput
    • $5.84/month/database in single region @ 100 requests/second
  • Azure reservations:
    • discount if committing for 1 or 3 year contract. 1 year is ~29%, 3 year is 49% savings
    • SQL Database, Cosmos DB, Synapse Analytics (SQL DWH), Azure database for MySQL, PostgreSQL, MariaDB

Portal

  • Pricing calculator: provides an estimate of resources
    • Total Cost of Ownership TCO calculations
      • Create a workload by entering on-prem resources including electricity and labor costs
      • calculates savings based on Azure in 5 years
  • Cost Analysis within Cost Management portal shows detail costs by resources, period etc
  • Large customers (500+) get a discounted prices if they have Enterprise Agreement
    • Separate portal ea.azure.com
    • Additional cost segmentation like departments, accounts, business divisions etc
  • Consumption API is REST API for obtaining cost data
  • Portal allows you to access, visualize and manage AWS costs @ 1% of AWS costs
  • Cloudyn is a new service that can run cost reports across all 3 cloud providers
  • Budget can be scoped at Subscription or to Resource Group level
    • can send out Alerts using Action Group
    • Action can consists of: Email/SMS/Call, Email to Azure Resource Manager Role, Function, Webhook, LogicApp, ITSM, Runbook

Controlling costs

  • Use Azure Monitor to watch for under-utilized VMs and other services
  • Build a baseline cost

Azure Advisor

  • Advises to reduce costs by
    • identifying un-provisioned ExpressRoutes
    • suggesting reserved instances v/s pay-as-you-go
    • right-sizing or shutting down underutilized VM (CPU < 5% or Network < 7MB in 14 days)
  • Besides cost savings, it provides recommendations for HA, Security and Performance

Other costing tools

  • Azure Cost Management is another service that shows historical spend
  • Cloudyn, a MS subsidiary, allows tracking usage, cost across all major cloud providers
  • TCO Calculator which estimates cost savings by comparing on-prem resources with cloud
    • servers, databases, storage and networking are high-level groups